Veeco Instruments agrees to buy Synos Technology

PLAINVIEW, N.Y. (AP) -- Veeco Instruments Inc. said Thursday that it has agreed to acquire privately-held Synos Technology Inc. for $70 million plus additional millions of dollars if performance targets are met.

Veeco said that Synos shareholders will receive additional payments based on the company's future performance that could boost the total value of the deal to $185 million. The deal is expected to close in the fourth quarter of this year.

Plainview, N.Y.-based Veeco makes precision manufacturing equipment used to make light-emitting diodes, hard drives and wireless chips. Synos, based in Fremont, makes systems that are used to produce flexible organic light-emitting diode displays for mobile devices.

"We have found a great fit to add to Veeco's technology portfolio and expand our growth opportunities," said John R. Peeler, Veeco's chairman and CEO, in a statement.

The company said it expects the OLED equipment market for mobile phones to reach $400 million in the "near-term." In the future, Veeco expects Synos' technology to be used in TVs, lighting, solar equipment and batteries.

Veeco shares rose 61 cents, or 1.7 percent, to $35.91 in midday trading Thursday. Its shares have fallen 17 percent since hitting a 52-week high of $43.18 at the end of May.